preference share

preference share
preferred shares of a corporation that have first claim to preferred dividends. Bloomberg Financial Dictionary
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A type of share that pays a fixed percentage dividend. Preference shareholders come before the ordinary shareholder when it comes to payment of dividends and if a company is wound up. However, as with Ordinary shares a dividend is only distributed if the company has sufficient distributable profits available. Financial Services Glossary

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preference share preference share Share

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   Preference or preferred shares entitle a holder to a prior claim on any dividend paid by the company before the payment is made on ordinary shares. The holder also has a prior claim on assets in the event of a liquidation. Typically these shares do not carry voting or pre-emptive rights.
   ► See also Ordinary Share Capital.

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preference share UK US noun [C] (also preferred share, mainly UK also preferential share) FINANCE, STOCK MARKET
a share in a company that gives the owner the right to receive a dividend (= part of the company's profit) before dividends are paid to owners of common shares, or when dividends on common shares are not paid at all
See also COMMON SHARE(Cf. ↑common share), PARTICIPATING PREFERENCE SHARE(Cf. ↑participating preference share), PREFERENCE STOCK(Cf. ↑preference stock), PREFERRED STOCK(Cf. ↑preferred stock)

Financial and business terms. 2012.

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Look at other dictionaries:

  • preference share — a special type of share in a company, which has the characteristic that it confers an entitlement to a specified percentage rate of dividend that is payable in priority to the claims of ordinary shareholders. A company s share capital may be… …   Law dictionary

  • preference share — A share in a company yielding a fixed rate of interest rather than a variable dividend. A preference share is an intermediate form of security between an ordinary share and a debenture Preference shares usually confer some degree of ownership of… …   Big dictionary of business and management

  • preference share — A share in a company that is entitled to a fixed percentage dividend rather than a variable dividend; for example, a 6% preference share pays a dividend of 6% per annum. If the company goes into liquidation, the preference shares are paid out… …   Accounting dictionary

  • preference share capital — Share capital consisting of preference shares. Under Financial Reporting Standard (FRS) 4, Capital Instruments, preference share capital was classified as non equity share capital. However, FRS 4 has now been replaced by FRS 25 (International… …   Accounting dictionary

  • preference share capital — share capital consisting of preference shares Under Financial Reporting Standard 4, Capital Instruments, preference share capital was classified as non equity share capital. However, FRS4 has now been replaced by FRS25, Financial Instruments:… …   Big dictionary of business and management

  • preference share capital — UK US noun [U] US also preferred capital) FINANCE, STOCK MARKET ► money that a company has from selling preference shares. Shareholders with these shares must be paid before those with ordinary shares when a company is paying dividends or if it… …   Financial and business terms

  • preference share — (or stock) (N. Amer. preferred share or stock) noun a share which entitles the holder to a fixed dividend whose payment takes priority over that of ordinary share dividends …   English new terms dictionary

  • preference share — /ˈprɛfrəns ʃɛə/ (say prefruhns shair) noun a share which ranks before ordinary shares in the entitlement to dividends, usually at a fixed rate of interest, and usually converting into an ordinary share at a future date. Also, US, preferred stock …  

  • preference share — One giving its holder a preference, either as to receipt of dividends, or as to payment in case of winding up, or both. In re Schaffer Stores Co., 224 App.Div. 268, 229 N.Y.S. 735, 739 …   Black's law dictionary

  • preference share — Brit. a share of preferred stock. [1835 45] * * * …   Universalium

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